Navigate:

Opinion Contributor

Obama's anti-energy agenda kills jobs

Obama is blaming Republicans for his failure to advance a jobs plan, the author writes. |
AP Photo
Close

If the White House has a reasonable explanation for how raising taxes on one industry without broader tax reform can create jobs, I’ve yet to hear it.

Real tax reform that closes loopholes in favor of lower rates is an idea that I support wholeheartedly. That’s why I have long advocated the flat tax. In fact, I recently endorsed and continue to advise Texas Gov. Rick Perry, who is now proposing his own version of the flat tax.
Repealing tax credits and deductions for only one industry, however, is the opposite of tax reform. It’s a classic Washington game of using the Tax Code to pick winners and losers.

Text Size

Critics will predictably counter that the oil and gas industry, as a pillar of strength in an otherwise bleak economy, shouldn’t hesitate to pay more taxes.

This is preposterous. U.S. oil and gas producers now pay the federal government more than $86 million a day in taxes, royalties and fees.

The industry is taxed at an effective rate of 41 percent. For comparison, the average tax bracket for industrial companies is 26 percent. The oil and gas industry pays its fair share.

If the president were really interested in creating jobs and economic growth, he would support more domestic energy production rather than punitive tax increases.

Allowing domestic producers to responsibly develop abundant energy in offshore and onshore deposits, according to a recent Wood Mackenzie study for the American Petroleum Institute, would create more than 1 million jobs nationwide; channel an estimated $800 billion in additional government revenues; and contribute 10 million more barrels of oil and natural gas per day by 2030. Opening more areas in the eastern Gulf of Mexico and along the Atlantic and Alaskan coastlines would allow companies to bring jobs back to the United States — instead of having to look abroad for investment opportunities.

Most Americans realize that additional government spending will not stimulate permanent job growth. If it did, stimulus Parts 1 and 2 would have cured our employment ills long ago.

If the administration were serious about job growth and deficit reduction, it would stand down from its “jobs” plan that would only further handicap an industry that stands ready to contribute thousands of new jobs.

Otherwise, cue the collective grumbling at the gas pump.

Steve Forbes is chairman of Forbes Media and author of “How Capitalism Will Save Us.”

Readers' Comments (117)

get rid of obama in 2012. it just came out his administration has made no decision on the keystone pipeline. get rid of the dems in 2012. indict holder for fast and furious and impeach the loon in the whitehouse.

The title of this article is pure propaganda, so I'm not surprised that the entire thing is a basic laundry list of right wing talking points, elitist canards, and more than a few strawmen thrown in for good measure. Mr. Forbes obviously didn't make his fortune writing pieces on economics... he should just pay someone else... But I digress, President Obama is the first President to actually do the opposite of the lie forbes tries to pin on the President. The President has moved forward on alternative energy, despite all the heat he's taking from corporate elitist snobs like forbes and every other war profiteering billionaire in the world like him. But instead of engaging in forbes "go nowhere" slander and lies I'll put forward some actual ideas, something forbes has lost touch with it seems....

In my opinion we need to forego political demagoguery and actually come up with a workable plan to liberate the United States from the shackles of foreign energy imports. At least from countries that don't like us, because we only have access to 3% of the worlds oil reserves and we consume 25%, so in order to free ourselves we have to have a reduction in oil consumption no matter what.

Oil shale is basically a rock that has to be fracked and mined and then have the oil extracted from it, that process burns a lot of energy and oil to accomplish, giving the process an ROEI of almost one to one; you burn a gallon of oil to get a gallon of oil, making oil shale basically useless....

Natural gas could be a good transitional fuel because we could convert gasoline burning delivery fleet trucks without too much trouble, however it will be an added expense to businesses so we'll almost certainly have to give them tax breaks, also known as subsidies.

Hybrids and electrics hold great promise for urban commuters and as more are sold and developed the price will come down and the need for tax breaks ( subsidies ) will decrease over time.

Volkswagon TDI diesel technology has consistently been way ahead of the curve compared to other fossil fuel burning vehicle efficiency. They can actually rival or exceed some hybrids!

I mention these because they all achieve the goal of lowering oil consumption.

We don't know all of the consequences from fracking for natural gas, so the "Haliburton Exemption" needs to go so we know what's happening and where.

I am also very intrigued and excited by the possibility that thorium fueled nuclear reactors which produce 99% less waste than uranium, could provide safe clean power for a thousand years with the fuel available inside of the United States. Thorium was initially under consideration as a fuel source for small portable reactors in long range bombers, which raises the possibility of continuing along those lines of development as well...

In addition, thorium reactors can't melt down ( utilizing Carlos Rubbia's ADS ), the little waste they do produce has a half life of 200 years, instead of 200,000, and can actually burn our current stockpiles of nuclear waste! Harry Reid should be trying to build the first thorium reactors in Nevada, thereby killing two birds with one stone.

Hydrogen powered vehicles face many of the same obstacles as NG vehicles, but with virtually no dangerous emissions it must of necessity be considered as well.

Also I think every new residential home should have both a wind turbine and a solar array installed at the time of initial construction, which will cut the cost of installation by as much as 70%. Use the power for the hot water heater which can store electricity as latent heat energy in the water itself- if they are as inefficient as some on these threads say they are. If they are more efficient then we'll all get a bonus.

Also I think every new residential home should have both a wind turbine and a solar array installed at the time of initial construction, which will cut the cost of installation by as much as 70%.

And I think you are just another full of themselves DREAMY liberal. In need of a good dose of reality. I also think you should run around the country, city to city, town to town with a beenie hat with a propeller on it that tests the natural wind speeds in those areas. So we can get a good feel as to where best to set up your residential housing projects. Because we all know liberals do not have any care for monies as none they spend on DREAMY projects is their own.

Oh wow, a hater on politico, I have been crushed,... whatever shall I do?!?

How typical,No ideas, no thoughts, just hate and insults.... where have I seen that before.... well, besides every single right wing post all over the entire internet... Hey Fester it would be totally pathetic if you were like, you know, all giggling and laughing when you wrote that because it is so sad and not funny or amusing or relevant.

get rid of obama in 2012. it just came out his administration has made no decision on the keystone pipeline. get rid of the dems in 2012. indict holder for fast and furious and impeach the loon in the whitehouse.

REALITY CHECK: President Obama has a clear sail toward re-election victory in a landslide in 2012. This is because the Republicans are doing everything possible to make this a reality. The lack of a decision of the Keystone pipeline is understandable since it is a complex issue requiring a great deal of thought before making any recommendation. It is understandable that Republicans would find such behavior as usual because Republicans rarely think before they speak.

There is very little likelihood that the voters will reject Democrats in 2012. Republicans have no one to blame but themselves. However, there anti-middle class agenda is NOT likely to win the hearts and minds of those who have to work for a living in the USA.

It no possibility that Attorney General Holder will be indicted since he has broken no law. Republicans should have learned this obvious lesson long ago given their considerable experience with Republican leaders being sent to jail for their crimes.

There is no "loon" in the White House today. The immoral George W. Bush vacated the White House in January 2009. The only loons on the current horizon are the Republican losers vying for the Presidential nomination of the Republican Party.

It would be impossible to indict President Obama because he has not violated his oath as President of the United States.

It's amazing how some people are just now finding that out! Wake up and smell some reality.

REALITY CHECK: It is Steve Forbes who is not dealing in reality. The basic premise of his guest editorial is wrong. His foolish claim that government imposes taxes in order to discourage something not to incentivize it has no basis. American consumers pay taxes on their utility bills each month. This, however, has not stopped them from using energy to meet their household needs.

President Obama will support more energy exploration, if and when, the industry provides the evidence that the industry can do in a manner that is not a risk to public health and safety. The BP oil spill is a perfect example of why regulations on the oil industry are still so important. The oil industry has not yet proven that it is capable of adhering to the environmental protection laws that are now on the books.

As things stand now, oil companies get considerable tax advantages from the Federal government. They do not deserve any more!

THE REPUBLICAN AGENDA IS TO MAKE THIS COUNTRY INTO A THIRD WORLD NATION.

Because we all know liberals do not have any care for monies as none they spend on DREAMY projects is their own.

REALITY CHECK: You must live on a different planet from the rest of the civilized world because it is rather obvious that liberals do indeed care about money. This is precisely why liberals are such strong advocates for developing cheaper, safer and environmentally sound policies relating to energy.

The money spent by taxpayers on any project is basically shared by conservatives and liberals. The reason for stating 'basically shared" is because liberals tend to be in the higher income bracket. This is why Blue States are the ones that enjoy a higher quality of life than the Red States.

The basic difference between liberals and conservatives is that the liberals spend the money with an objective to be a competitive force in the 21st century. Conservatives want to see this nation return to the good old days of the 1940's when the oil barons dictated to government officials what programs and policies should exist.

"Members of Congress on both the right and the left, however, stopped Obama’s American Jobs Act in its tracks. They recognized it for what it was: a glorified repackaging of tax increases that have rightly failed several times before"

Well said. It is what it is, it's the same plan as before. It did not work then and it will not work now. I really think that the President is probing the depth of the intelligence of the American public in proposing this...is he playing games?

What the President has proposed is not a workable plan, it will not put Americans back to work and it will further divide this nation. He is clueless, way over his head.

We need a leader that can offer real solutions, a solution that will work.

A solution that will put the might of our collective strength, intelligence, diversity to for us instead of against us. Obama is a divider...we can't afford that now... we nead a leader for this nation.

Obama is not that leader, he has not proven himself. He and the Democrats Pelosi, Reid, Dodd, Frank, etc.. are bad for America. Just look around your neighborhood.

REALITY CHECK: President Obama has a clear sail toward re-election victory in a landslide in 2012.

An why should Obama "sail" towards that landslide? Is it the great job he has done in reducing the unemployment rate? is it the Unity he has provided as a leader of the free world? Is it the reduction in reliance on food stamps for our citizens? Is it his policies that have strengthened our ties with the world leaders we have had in the past? Is it the calm leadership provided that has kept the population from demonstrating in the streets? Is it the confidence in his leadership that has calmed the financial markets to NOT downgrade our financial strength of our currency in the world? Is it the kept promises he has made during his bid for the presidency? Is it the new found "Hope" we Americans feel in our direction as a country? Is it the high poll numbers he has received because of the confidence of the American people in his leadership...must I go on?all

Promise us that you will be here on election night in 2012...explaining why Obama should have won.

That's the "real" REALITY CHECK....On Nov 2012 you will see the real "Hope and Change" you can belive in...it's called the American voter voting out a failed leadership.

Steve Forbes did not become a highly successful businessman by making bad decisions. Forbes is well recognized and highly respected for his intuitive business sense. Forbes is a leading jobs maker. Steve Forbes is a history maker in the world of business and economics.

Once Bitten brags on Obama, "The President has moved forward on alternative energy"

Solyndra.

Once Bitten goes green, "Oil shale is basically a rock that has to be fracked...an ROEI of almost one to one"

Completely untrue. "Return On Energy Investment" (ROEI) is substantial. All major energy companies and a majority of smaller energy companies are aggressively pursuing fracking. This is a lucrative business which will keep energy costs low and will create a million to two-million jobs. Our energy industry is the top job creator here in America.

Energy companies have formed an association group and are working closely with our government and our EPA to identify problems, prevent problems and to create safety regulations. Energy companies are pressing our government to write regulations to safeguard our public. Energy companies are leading this effort to create regulations on their own industry.

Lately I am reading greenies claiming fracking causes earthquakes. This is simply ludicrous. This is another black lie being told by eco-terrorist greenies. I am reading of tap water catching on fire. This is also a black lie being perpetrated by greenies; no truth to this.

Most prevalent lie of greenies is fracking pollutes water supplies. Again, no truth to this. Fracking occurs thousands of feet below water aquifers used for water supply. All water aquifers are very close to the surface of our earth, usually no more than fifty to a hundred feet down. Those with common sense and a bit of smarts know aquifers are fed by rain and snow melt peculation through porous soil and rock. There are no water wells which are thousands of feet deep.

This claim of greenies fracking pollutes water supplies is a black lie. When there is pollution this is virtually always at the surface and is caused by leakage around a poorly sealed wellhead. This is very rare and has nothing to do with fracking. Greenies are lying.

Fracking fluids are 98% water and sand. This sandy water is pumped back out and recycled for fracking use again. The other 2% of ingredients are harmless and found in households, found in body lotions, shampoo and especially found in processed foods. We eat those chemicals which are sparingly used with fracking.

Sometimes a thin oil is used to frack rock containing oil. This is pumped back up and reused or becomes part of crude oil production. Oil cannot pollute oil. Greenies are lying about this as well.

An exception is formaldehyde, but this is rarely used and when used is less than 1% of a fracking fluid mix. Formaldehyde is found, high amounts, in house carpet and house insulation. No screaming from greenies about house carpet which could prove deadly if not for ventilation. Formaldehyde is found in upholstery foam, deodorant, room fresheners, pressed wood, clothing fabric, glue, shampoo and other products. Greenies are not screaming about those.

Greenies are lying about fracking to promote their socialist political agenda, just like they are doing with this fabricated global warming nonsense.

You and I discussed this extensively in the past. You know this is literally impossible. You fully agreed with me this is impossible. I explained to you natural gas does not create enough power to drive trucks, trains nor airplanes. I cited an example of a big rig powered by natural gas would require a natural gas tank larger than a trailer towed by a big rig tractor. I also cited natural gas cannot create enough power for a big rig to drive up a modest hill. A train would require a hundred or more freight cars simply for natural gas storage and could not go up a hill. Airplanes powered by natural gas would be too heavy to take off.

Once Bitten suggests portable bombs, "Hydrogen powered vehicles"

Those would be weapons of mass destruction on wheels. You know what tragically happened to the Challenger space shuttle. Hydrogen powered cars would do the same on a smaller scale. A hydrogen powered car could easily take out a city square block if there is an explosion, and there will be hundreds of explosions each day if hydrogen powered cars are in the hands of the public.

Once Bitten wants to kill eagles, "wind turbine and a solar array"

Wind turbines kill hundreds of thousands of birds each year. Wind turbines kills thousands of birds of prey each year, birds like falcons, hawks and especially eagles. A single small wind farm up near San Francisco kills 80 golden eagles per year. Our national symbol of freedom is the eagle. Within 20 to 30 years, eagles will be extinct because of wind turbines. A wind farm back east must shut down at night because of killing an endangered species bat.

Solar panels are only 6% to 8% efficient. To solar power a typical home requires about five acres of solar panels which do not work at night nor on cloudy or rainy days. Currently, solar plants around America have destroyed millions of acres of wildland and wildlife. Solar plants require a scorched earth policy; wildlands are scraped barren and all wildlife is driven away or killed.

Readers are urged to take a close look at green energy. You will learn green energy is quickly destroying Mother Nature at a pace greater than ever before in history. Green energy is the most environmentally destructive force created by humankind to date.

Steve Forbes and Rick Perry are proposing excellent common sense energy ideas which will keep energy costs low, create millions of jobs, help our economy recover and do so while protecting our precious and priceless natural environment.

Steve Forbes and Rick Perry would never kill an eagle. Environmentalists kill eagles every day.

Why does Obama want to destroy energy jobs? He wants to destroy the economy. He wants to destroy the United States - Imperialists. When are the liberals and Democrats going to understand this? It's just not entering their thick skulls.

Once Bitten: You are correct in the fact that we need to, and are developing new and different sources of energy to run our country. But in the meantime we need to continue using fossil fuels. I follow the oil market and information on a regular basis. What you are not aware of, and really could not be, is that there has been a new "Green" process developed for recoverig the oil from oil shale rock and convert the byproducts to a saleable items. The holdup is not the process, but Secretary of the Interior Salazar, who (And this has been verified by several attorneys.) has been holding up approvals for any work to proceed. It has been verified that he has made several illegal moves and unless he mends his ways, you will hear about another Obama scandal in the first quarter of the year. Cuba, China, Brazil, and several other countries are drilling in the Gulf of Mexico and our administration continues to drag its feet on permits. My research, which consists of reviewing geology reports from through the country and speaking to a multitute of petro-engineers, indicates that we could very well be oil indepent in a very short time. That would help generate the jobs and income and a improved economy that could the truly support the research and manufacturing of new "Break-through" energy sources with which we would lead the world. I am an Independent myself, and if I could, I would bring back Harry Truman who the "Buck Stopped With" for President. Our current President has not done much more than tear the citizens of our coutry apart and set them on each other, since it serves his agenda. I have been around for seven decades and it is a very sad things that I see the President involved in. "None Dare Call It Treason", but the tearing down of our country is Treason!

Once Bitten: You are correct in the fact that we need to, and are developing new and different sources of energy to run our country. But in the meantime we need to continue using fossil fuels. I follow the oil market and information on a regular basis. What you are not aware of, and really could not be, is that there has been a new "Green" process developed for recoverig the oil from oil shale rock and convert the byproducts to a saleable items. The holdup is not the process, but Secretary of the Interior Salazar, who (And this has been verified by several attorneys.) has been holding up approvals for any work to proceed. It has been verified that he has made several illegal moves and unless he mends his ways, you will hear about another Obama scandal in the first quarter of the year. Cuba, China, Brazil, and several other countries are drilling in the Gulf of Mexico and our administration continues to drag its feet on permits. My research, which consists of reviewing geology reports from through the country and speaking to a multitute of petro-engineers, indicates that we could very well be oil indepent in a very short time. That would help generate the jobs and income and a improved economy that could the truly support the research and manufacturing of new "Break-through" energy sources with which we would lead the world. I am an Independent myself, and if I could, I would bring back Harry Truman who the "Buck Stopped With" for President. Our current President has not done much more than tear the citizens of our coutry apart and set them on each other, since it serves his agenda. I have been around for seven decades and it is a very sad things that I see the President involved in. "None Dare Call It Treason", but the tearing down of our country is Treason!

Once Bitten: You are correct in the fact that we need to, and are developing new and different sources of energy to run our country. But in the meantime we need to continue using fossil fuels. I follow the oil market and information on a regular basis. What you are not aware of, and really could not be, is that there has been a new "Green" process developed for recoverig the oil from oil shale rock and convert the byproducts to a saleable items. The holdup is not the process, but Secretary of the Interior Salazar, who (And this has been verified by several attorneys.) has been holding up approvals for any work to proceed. It has been verified that he has made several illegal moves and unless he mends his ways, you will hear about another Obama scandal in the first quarter of the year. Cuba, China, Brazil, and several other countries are drilling in the Gulf of Mexico and our administration continues to drag its feet on permits. My research, which consists of reviewing geology reports from through the country and speaking to a multitute of petro-engineers, indicates that we could very well be oil indepent in a very short time. That would help generate the jobs and income and a improved economy that could the truly support the research and manufacturing of new "Break-through" energy sources with which we would lead the world. I am an Independent myself, and if I could, I would bring back Harry Truman who the "Buck Stopped With" for President. Our current President has not done much more than tear the citizens of our coutry apart and set them on each other, since it serves his agenda. I have been around for seven decades and it is a very sad things that I see the President involved in. "None Dare Call It Treason", but the tearing down of our country is Treason!

A solar plant over in Nevada. A tractor and dump truck are in the right bottom corner for a sense of scale.

Look close. There is not a living thing inside this plant. Temperatures inside this plant approach 300 to 400 degrees. Mother Nature is exterminated completely for and in this plant. Construction cost is a BILLION dollars and annual maintenance is millions of dollars per year. This money will never be recovered, this plant will be worn out and abandoned before this billion dollars is recovered. With complete removal of this plant, this will take about two centuries for Mother Nature to recover.

This plant only powers about 75,000 homes and only on sunny days. All that environmental destruction for literally nothing and for a serious hit on our economy. This is a boondoggle project which devastates Mother Nature.

An eagle killed by a wind turbine. On the average, an eagle is killed each day by a wind turbine. My personal estimate is a dozen falcons, hawks, peregrines and other birds of prey are killed each day by wind turbines. Crows, woodpeckers, geese, seagulls, all kinds of birds, and bats, are killed by wind turbines, daily.

Environmentalists are directly responsible for this slaughtering of Mother Nature. Barack Obama is directly responsible for this genocide against American eagles. Environmentalists have declared war upon Mother Nature and upon our sense of decency.

Is this what you readers want for our home, America? This will not be long there will be no eagles soaring free in our skies; those eagles will all be killed by environmentalists, intentionally slaughtered. Environmentalists are killing our national symbol of freedom.

Steve Forbes and Rick Perry will not do this, will not intentionally kill Mother Nature. There will be problems with coal, gas and oil, I will not lie about this. Those problems will be minimal and manageable because of modern technology, while we produce energy responsibly and safely. We will do this, we are doing this.

Contrasting, environmentalists are killing Mother Nature every day, year in and year out.

Is killing our eagles, is killing our national symbol of freedom worth this price of green energy?

Steve Forbes and Rick Perry are proposing an excellent common sense energy policy which will save America, save American families and save Mother Nature.

Once Bitten: You are correct in the fact that we need to, and are developing new and different sources of energy to run our country. But in the meantime we need to continue using fossil fuels. I follow the oil market and information on a regular basis. What you are not aware of, and really could not be, is that there has been a new "Green" process developed for recoverig the oil from oil shale rock and convert the byproducts to a saleable items. The holdup is not the process, but Secretary of the Interior Salazar, who (And this has been verified by several attorneys.) has been holding up approvals for any work to proceed. It has been verified that he has made several illegal moves and unless he mends his ways, you will hear about another Obama scandal in the first quarter of the year. Cuba, China, Brazil, and several other countries are drilling in the Gulf of Mexico and our administration continues to drag its feet on permits. My research, which consists of reviewing geology reports from through the country and speaking to a multitute of petro-engineers, indicates that we could very well be oil indepent in a very short time. That would help generate the jobs and income and a improved economy that could the truly support the research and manufacturing of new "Break-through" energy sources with which we would lead the world. I am an Independent myself, and if I could, I would bring back Harry Truman who the "Buck Stopped With" for President. Our current President has not done much more than tear the citizens of our coutry apart and set them on each other, since it serves his agenda. I have been around for seven decades and it is a very sad things that I see the President involved in. "None Dare Call It Treason", but the tearing down of our country is Treason!